A. Consumer these + 4.4. Pasic Conuods - 4. Consump hon Se > Xx - Feasible set . Preference relen : Pehouior | assump on - sc US }D =o: 5/20, 0) ok consum phen bundle Ccousumpdron plan) Apa ie 2) es Glace ie Xk fs convex 4 OE XK Constraints Ga wang feasible set A preference rela hen 3 Cousomer's taste the behavioral assumption : : The whSumer Waximiags Wis J bev sckstecton accorkieg 45 Ws / ae awe foreuers.AKe Qrelerenes 3 ukecty Preferenus « ha oes 40 i ae ete ae Pe eslies ah least as good on £L a preferene elahen for tls Consumer Gaim BD) Comoletness - Yl x2 EX ether 2 4 ee Ray weeshees. ce i eee ae a a Cea tee oS. Tt can be stro gee io Ze pt ec eee oc a aa _ stret peat evene Tdi Pleven 3 Note’ x WGectoes ab is goods | aba ae eg Gu ay hae mn) xl (ee oeTrew aw a Pew sets assowated) with a) th oie x°eX |b) Pref. velads on aS 4. “qt least as good as") ol ott EO he Her ha a 0 4 eyt4% ler oh xxl a aM worsk thon # ea) tae 3 prefewred oe AW ie) |xeX,s Mrz b S.~ (4° ey ( 7 oe : ce x= i. ee o peeiloks esi Fh Gnd) VER, Coote X= Ry) T= poy ond 4X MY ate chord Court! wu 4y Ss See aw eaeCOviom | non- Sahahon y Pea 3x € BC2°) 0 Tis such det Mar We) eee 0 enn: Hay er CGvien ¥) Stavct mouoton ty Eee V xxte Ry 1 Mele. Axiom ¥ ea ~° zs x1 =, o> ual is Mane than by gies! = ee Mote x ey ans ao Se thot ts wou goods i“ Cer yee” fre “t Cues! Comvering oe 6 Ove xt Vtelo,1] Coon Gl Sartell conuoxt) eodat » xe axt = He (apa YteCO,1), <Doman) daserrb¢ "well- bohavect ij mle ot sowe or Pecences the « werd ww ferenues " Ako Satrator. eae o. | pe tues bect Lor Ly wovsuwer Fo veeioued s » Glso covucauche like . Convex ty means Uni Kio is gyood Dh wows 7, te dottee . » MES «e€ einen —> weles Louse Aa | said lopowns diuimishing 5 - The closer you to x? tho wore f Xs You Wave — He less you lve ready to qive oP 2 exchauge for cue wre mew ce4A On the Uh tity Function UF ‘s a eretuee ee pv fovewes Miscondem eet matce ue Def. U: Ry eee utetita fnedvon represen bua > oe Py? ooh RP Wey wc 2) er ee Ties 2 Existence . Accome & sch Bed Arms ts then thee existe a udvbity A Saedean elZy ve presenhin ye : d ee Note 4. Axiows 1-4 ave Linea ae Thus , we al wos of wars have the ubtity Povetton | 2, Theoremd says 3 wiedshy Pelion eo w She ubd Deleon =? those way be mana u. ve presen Hu Sawe &.teocem 9: Monotone + raat Lormeho % f ee f+ ute) repeseuds > then Ute) cso copie seul = ef 4S(x) = p(ule) Yr , whove eR >R sasdiclly bacea sing Lonckion (On the set rd values fu) Sketch a peosf SS tl rep resouts a5 dude SESe Be, nod eae a Pmehron Mad it ts Cucreasing - Debkne y as: fp (um) Sines Shor @ A Ghia then by biPacvon yl?) = yit ) thovebre e(u (x°)) = eG uct?)) : Vez Qousrloe ye nS (ie es g (un) é C Hom ecu). g cud Show‘Taney Peererts A ai repereuted be u(e) . Ay TO ed as stetly pees ne is -stretly youg towne . Daa OC att a Wosr congue 20 S ps Convex 2 Uy eapa t= stavelty ptemge Ons Ee ag NSS strictly convex. Dany (MemeneNl) 1 a ne wwol(- beloved! pe ences 7 cme quasi - Contave . => Waxiuisehon Perbleus i is wel@- defioal ‘Subs 4 Oe Cagis eeraiene => we Cav study Oe rhe alae ovhen unique . » Ve olen we will oouwlee ih Lit douchion aud vot the vs derlyi a peers — Convenient -Tot example whew the hy Lire ton ig A RRevembadle - M(t) = UlCI 2) - MU, 2 OU nh) z how ud Oty CU Crea te Caw ohon v, tuclitate $4 4 wary ined a fd voit. MRS, - [the slere ad te jae tudif¥erenw CuRve | ee tang | by 4, how mmc Ge foal ren ay good on we stay a} dhe Same level of sects fee ic: 4h aD : toes) 4 ay) =a > oe jee Layo Xe “OMA xy fy Oude, LionDeroond oe shifterendiwble abt War uUlr) s+ we < ‘ a Lin eae tha Augconeycen : 4ho soludvon &S ivtenor | Gssume \Culn— Tucker cond: don8 > ou Oe Dive) moe, se al =O > Duley x ae : > “buon, We ae merce re Du as Te Re =) Du Ot Vox. Re ned > thw slope df He ind Porence Conve = OG tee i Wo lbndaet dine xe ! f oe ea"the Buenin Exar le . a CES ubdity Luncdon : (re, 9%) = (ab+2, ny RE (9, ayy. = eee) wonohwe & staedey ve eConuex . UALy (dent) st. Raat Por < ue a eit xP a, pati me = A = Om "os Ba conte a) Be en. ie SI > ne Weel AN Sn G . Pepa ¥ is mes D\ Oh a 4 2 Me dors Nae? th prod 1S different Brae tte Aer bole , ut no result is dho same.Droiur hes A the Inolirect UF ah G 10 Ul) is Couh'nuond & aie Cvertesting then vCpi4 is 4. Cowhnuous on Pe at 9 Homogen ous ie degree Mera cw (a) 3. Staeldy cnertasing Oa y. Decveostuey fn 5. Quesi- convex th (py 5) 6 Roy's tdonbry UP pg) 7s eiPHaradhasl at Cay?) and SSD 4 0, the nue “OU ( p14") Mee ——— = 4a _ euimiles Prooks: 2. (ey) — tpg) = Ctp. ty) V(t pity) = Way Ur) Ss Le Ges ot Max “Ky Pa) 3. wo Ad fereukabiGty ~ Wetter ae K the Evvelope th. Tox, Lexa) = Ve) i~ G xek ; 1 OVG) _ O& Cree Mar) fst Bee aoe westhe Exteudihne Ponahon . SL ee eT ES Now we Cy Vo wel u aud ~ ™~ as couage lved ; ole ts nt > wuiwn| ctowe that allows 3 us to attain duis jevel Say n Caiven prius ) =7ecpu) | wat Cnoue|e | too umel 2(p) Eran ny (2) oy Zi Date re es as asa cout ave (strict ) => Then tle soluko ¥& (©) 1s unique x (eit) pasion f (x) _Hieks h dewand Tae ae Cpu) Lurch’on . lone eee thea Hicksian Vaawavd 4 + - diReveut Rom Na Cpa - Marshall ran demand . tan Notwotly 7 & xnCpa) :SUE oe Ae eee COP 90s ie Ay Simple Teles cee ey : : ao » a Cxawple S&S. CES U (x)= (#/+% QEfor). _ eeu: min Pi Mu tae ae ce pee Ui ee Renee Ae Son ye) poe BE Pa Gs “ie a ae Par » (ata we = 2 «2, C£ ae => 2 Bo “GD Yan Ss epee aon ley if ie Poe oy => a Pleo ren oe Cor Pe Me Nie ecu ye pe 7 A Oe aQelukous, hetwea, cudsrect UF P LK Mba THe - VQpy)- Ug level f Fiy Coy) == uel attained le - a ace yep “w) i VY ipq)770 oO ee 2 a » Vow Hy eey uw) (*k) we have Mee € (pu) > Us ¥(P,4) eae Vv? max thew snequabsdes Lo low Drow cle Lahons. ths 8 12 U(x) is Conb'pndns and stiedty iveveasiin then 4 of, vip) =4 aN yg eCpuy) =U: A\l we are prove is veverse (neq vals — Ke b (A), Gy ile invol ves won king with £30 = not required in We CorereWon we can save hme buy s of uri ould one of 9 prrblems . AN rf we lave solved ke Os scp, ecpw)=4 Yow +e roton ase 2 ian ve ; nV (uy CLES, peas Ce inveed J aud ohdain frown (x) ae (4) eS -4 % ~ eCpuy= & Cue ad ap are Jxample y Vv (0, Wi 4 (+) > vO, eCpud) = eCp4) Carte ) e 4. eee) = U-Cprtp, )™ a ie+thoorem 3- Ducbery Willian, (ee and ah 4. xy € y= ECP YEP) wae xt (p.4) = xi Cp 2cp)) Geometn'e ge Couside? neo a dhe soludion wor)ee = YP YD vt ax UD >. EOE: px aa = e(pu) is we fix the brdect J fi five er and sheft cul free curves 7 3 a2*(p4)y ts tne solution. \ of a J “tho teal utiby is yor) wlich is equal +o Vile) «aM Pox this ind-fheren x also solves exprrchihwe ool Sy teeNeUne a Mibaean vj uu gator areblew 2 Z*Cpy 2" Cprmers) Mole, Oue assompryion Hel ul ts strctly Syaasi- Covlave ajuarant ees Heal fre cvbbons | Cf e uni ghe. j AEyample £ CES he ship) = 4 Cpr+ps ) a i Woiw\e ig Cot Ps) 7 Pa yey) Te ae = % (PD Reverse : oA . pte { e (9,0) Wt cpap)” , +g 2} % (0, ec) = UB ‘ii : ZS ne" (pin) : an eeee EE ‘5. eu ae +h. 40. Under reqular oe x Py) te \romage nous A cig fee fu (Pag i) ek agi eet OD one We Awe’ Yas frou, +h 6 + bet ee am ycterty ) ioe \ Ae = HPi4) (x (tp-4y)) (4 (x00 a a ul) Is strict ly aynosi- i ES uw ques soluton = ee xrtpr ty) (Note Ih A Meee ate +e Same Yu Sam Tor ue est be dhe Same Same Lertoayy 8 CERs*YY Poudeet Aaland tS is also clase aes be ‘ proved Oe) Callous, fo Use vela bue eae XY) 7 aa oa x C 4,5) og WA Cav ney) * 2 CR “ gunthooiem 4. the Slutsky Pquahon Fix (p4) 5 rCPiy ) - Hye Marsballran doneue ur = vCpy) - ue level of ud bity ee Wie ae Du (P9) 9 Peep = MR aterag. Preef ges i oS at (put) = Xe CF ecpu) 7 a 2m ) equ) oe (put) = = DX Pie (pu “OP rs 797 ee oye have put) = oo ea He ate “setgu" a Pare u*) an Cp, Vipy ) . sete) 84. Plug ancl {ee -avvauge rr Note : j cau be equal to ee zque “de (PH ) Lo aed Pe SE 1S al ways mgabve a age an bcpu ) 9 5 OOP: a ie a Says | el Sane ee tale P Dy" oO xn a => % is ivfewor prox \ Jlowsh oie Sl et sky oF ae ee“nue Symuu feic Substhikor Teems | Assume CG is tui coutinuousley sa Ns oy di Phere beable . . De, (Pu) = oe Cpu ) Ves oa “2Q5 Pe -_ a rok Wwe lnow tut oO, ' cs em wpa) Dilleverkat 2 Coa Pi aay yte ba x! ie we hi 46 i ze sae ye ica aso) ede. 7h DREN taea (policies : 4 = 2p tS eee VP: “Ox (py) _fylows elacdeet Def ioe a4 Le on a i eu: em (PD - Nee: elistd, - EN MEO 4 (PY) CF -CrOSE s. 2 Te I> _sqiome shape - ‘3 Bisa 2 A ened agg coqa hon ZS 1s el 2 Cournot 849 C¢qakon 2 SE So Qrod oe ane vpsy 7 wet gy 2 7 ge oo =a at baer oi Os eo ee oR =) 7%; 4 /uay 2 =) “5; wile ane (256 MAAA Aa cs. . _Addibonal topics in Cousumer Thylg . * David Wad db. Whe +wo inde Le rout Curve aor iuteesect 2 Assume the cout rary At O 4 BC ee by draus hui by arrow Ards ome AnD > coutpe dredron, ae Of Monetow' deausforma bons bs vel 4 3 ial ae R (es eR) - yaows er G if 4 Gn aCl stidty Te Ronedvan - = rom - praca trauc D ana hia é exe cere ie Gane ee X20. WES) )) = oh PO gst Bey k\e70 wv daiat @ &m 4> Duabity in Cousuuer Clorce . Ayiows oe Cousuueee ee ve Drivel a Deal ‘ Auer (9) Marin Pe qx (4 —Pre-Pe) anu% 4 (4% alk Roc i > ,. 2 Pigs. | yee cod Fhe ockwuw , the wyxt ¢ Sut on each ayer yields dy Somaya aus OL «Also, pow the ET we have = 5 D» ‘s de “Sredow peice" of Wi Lae Constr] «On iwengane ty ati City frown the vwoxt dollar.